TARIFF INCREASES

Greymouth Evening Star, 24 July 1930, Page 5

TARIFF INCREASES

EFFECT AT GREYMOUIH

PETROL “UP” TO-MORROW The effect of the tariff revision upon retail prices at Greymouth was the subject of enquiries made by a “Star” representative to-day. Summed up, the position appears to be that retailers are awaiting official advice from wholesalers, before taking any action, it is expected, however, that the price of petrol and lubricating oil will go up to-morrow. The prices of other goods affected by the tariff, including spirits, cigarettes and tobacco, and various grocery lines, show no change so far, but it is only a matter of time before the increases are passed on to consumers.

“We are awaiting confirmation from the petrol companies,” said one garage man. “We have an inkling that the companies may absorb a portion of the threepence per gallon increase themselves, and in that case the increase to the users of petrol will be proportionately less. No official advice has yet been received, and we are selling at the old price meanwhile.” Asked whether there had been any noticeable increase in petrol sales since the announcement of the new tariff, he replied in the negative. “A runiour gained circulation about a week ago that the price was to go up.” he explained, “and I think if you went all around the town you would find petrol everywhere. We have lost quite a few customers, and I am of opinion that’ they have bought petrol in 40-gallon drums and stored, it, to avoid paying the increased price. I believe that the garages are in for a pretty bad spin, so far as petrol sales are concerned, until the supplies laid in by motorists are used up.” “We expect, the price to go up tomorrow,” said another retailer of petrol. “It has already been increased in price at Hokitika, but in that town the dealers get in supplies weekly, and not from day to day as is the case in Greymouth. “We will simply be handing on the increase to consumers.. In the meantime, a few people are buying drums of petrol for private use. So far as my firm is concerned, we have not bought supplies ahead, as such a policy is against my ideas, and does not seem fair to the consumers. When the price is put up to us, we canriot avoid passing it on. So far, we have received no definite advice from the companies, but we expect to hear at any hour from Wellington. Within the next day or so, however, the price of petrol will rise by threepence per gallon, and the price of lubricating oil by fourpence per gal Jon.” “We are waiting to see what the oil companies do,” said a third retailer, “and the price remains the same in the meantime. There has been an appreciable difference in the demand during the past week or two, and, people seem to be storing petrol up.’ “Waiting to see whibh way the cat will jump,” replied a fourth retailer questioned.’ “It is probable that a definite decision will be reached to-day. The Greymouth agent of one of the wholesale oil companies stated that no definite instructions had so far arrived and the old price still rules. Communication with Wellington this morning showed that the prices had not. been increased there, but an advance is expected to-morrow. In reply to a query as to the local demand for petrol,.he stated it was fairly brisk, but nothing out of the ordinary. “I think money is pretty tight,” he added. . Commenting on the announced increase, the secretary of the Greymouth Automobile Association (Mr. W. F-. Harley) sounded a philosophical note. He stated that the shock, to motorists would be broken somewhat if the additional revenue from the petrol tax were devoted to the improvement of the roads. Motorists required better roads, and recognised that such improved facilities must be paid for.

DEARER “SMOKES.”

It is expected that cigarette smokers will be called upon to hand an extra penny over the counter for each packet of cigarettes .purchased, while tobacco (New Zealand excepted) will probably be 1/- per lb dearer. “Not yet,” said one tobacconist, in. reply to the pressman’s query as to. whether anything extra was required for the daily supply of “gaspers.” He would not increase his prices, he said, until all his present stock was sold out. The increase would be charged on new stock only; It would not be a fair thing to put up the prices on cigarettes already bought. “A good many customers have expressed the intention of making their own cigarettes from New Zealand tobacco, which is not affected by the higher duty,” he remarked, “while others have threatened to stop smoking altogether!” The effect of the increases on bottled spirits would be about 1/3 per case, said a wine and spirit merchant, but draught lines would not be affected. The increase would come into operation immediately. Another merchant estimated that case spirits would be increased in price by 1/4 pei’ bottle, but he had a reassuring word for beer drinkers. The increased duty represented 2/4 on a 54-gallon hogshead, he stated, and this would work out at one penny per dozen bottles, an increase so slight that, it could hardly be passed on to the consumers,.

So far as groceries are concerned, the general opinion ’of retailers is that the increases, where any are necessary, will be slight. Referring to foreign jams, one retailor stated that he was not clear as to whether jams imported from England would ho classed as foreign. He believed, however, that the duty was directed against jam from South Africa. Traders in New Zealand had objected to competition from South Africa, on the ground that cheap coloured labour was employed in the jam-making industry. “It will affect jewellery to some extent, but the price of watches will be noticeably increased when new stock comes to hand,” said a watchmaker and jeweller. “Some watches are imported from America, but most of them are. of Continental origin. The increase in the duty represents 9/- in the pound, and this must naturally be passed on to the purchasers.”

WHISKY TO COST MORE.

WELLINGTON, July 24.

The abolition of the allowance for under-proof spirits will result in an

increase in the price of bottled whisky by lfi/- per t.wo-gallon case, or 1/4 bottle. The Wine and Spirit Merchants’ Associat ion decided to pass on the actual duty of 7 5-Sd per case to hotelkeepers. .It; is stated on reliable authority that the abolition of the allowance on under-proof spirits will affect from SO to S. r > per cent of the whisky imported in the Dominion.

TARANAKI’S HOPES

NEW PLYMOUTH, July 23

The new tariff proposals were the subject of discussion at a special meeting of the Taranaki Chamber of Commerce. It was decided to take no further action at present, beyond passing the following resolution: —“That while recognising that the Government is forced by (he present stale oi its finances to obtain additional revenue through the Customs, th'"’ Chamber hopes (hat the imposition of the surcharge is entirely a temporary measure, and will be removed at the earliest opportunity.”